Archive for the 'Mortgage Update' Category
Largest Unemployment Rate in 33 Years Skews Mortgage Rates
June 9th, 2008 Categories: Mortgage Update, Real Estate News
This weeks mortgage news:
- Long term mortgage rates experienced some minor upward pressure last week while short term rates dipped a bit.
- Unemployment rose to 5.5% - a jump of 0.5%. Mitigating factors include an unprecedented number of entry level workers, teens and college graduates all hitting the market at the same time.
- On a positive note, the economy was projected to lose 70,000 jobs but the actual number was 49,000.
- 30 year conforming rates have increased to 6.375% with 0 points - the highest we have seen in 4 months.
- The House of Representatives is proposing a $7500 credit for first time home buyers or those who have not owned a home in three years - but the credit must be paid back over a 15 year period.
- The Senate is proposing a credit of $7000 but it would apply only to foreclosed homes or homes that meet a very strict criteria.
As always, thanks to Rob Clark for sharing his up to the minute expertise.
Michael
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Continued Up Swing in GDP - However Slight - Helps Balance Economic Worries
June 2nd, 2008 Categories: Mortgage Update, Real Estate News
The Gross Domestic Product (GPD) numbers came in this last week at 0.9%. While well below what economists would call healthy, it was enough to start the reverse some recession-leaning positions.
As quarterly reports with the GDP above zero continue, the probability of recession becomes even less likely.
Overall this is good economic news but the downside is that any acceleration in the economy is likely to lead to increased inflationary pressure and mortgage rates MAY creep upward.
Two important economic reports will come out this week - the ISM Manufacturing Index and monthly unemployment data. I will have more on those next Monday and their impact on the market.
In the meantime, remember that in today’s market the right price - not the number of bathrooms or the state of the kitchen - makes all the difference.
As always, thanks to Rob Clark at Preferred Mortgage for his insight.
Michael
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Stable Mortgage Rates Are In; Double Height Ceilings Are Out
May 27th, 2008 Categories: Mortgage Update, Real Estate News
With the official start of summer behind us, it seems the Federal Reserve is done with lowering interest rates as indicated in the recently released minutes of their last meeting.
If anything, the Fed’s next move would be a rate increase. That however depends on already existing inflationary pressures in the market and the government’s effort to stimulate the economy.
Bottom line - we may spend the entire summer waiting for some clear economic direction. Second bottom line - current mortgage rates make buying a home a very doable proposition.
Rob Clark, my go to guy at Preferred Mortgage, also offered the following tidbit: builders across the country are reporting that great rooms with double height ceilings are no longer in high demand for three reasons -
- Energy Concerns
- Increased Noise Levels
- Cleaning Challenges
Ummmm, does this mean real living rooms might make a comeback?
Michael
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